This week turned out to be slower than expected on the IPO market, as intense volatility on U.S. exchanges prompted many companies to put off much-anticipated debuts.
As a result, a number of newcomers are looking to hit the market next week, when, so long as the Nasdaq doesn't plunge, analysts expect new issues will stand a better chance of success.
"This week's IPO market was a victim of the general market situation," said Irv DeGraw, director of research at WordFinanceNet. "With this much general market volatility, the fact that we got any deals done was a miracle."
Market madness aside, the week did witness a few IPOs logging in first-day gains. Sonus Networks (SONS) led the pack by more than doubling in its debut. Centillium Communications (CTLM) and Stanford Microdevices (SMDI) weighed in with first-day gains of 20 percent and 28 percent, respectively.
Another closely watched deal, electronic components maker Integrated Circuit Systems, declined its first day out. And still others, most notably networking equipment maker ONI Systems, put off their IPO plans for next week, hoping for a market a bit less spooked by the twin specters of rising interest rates and falling technology stocks.
As a result, as many as eight initial offerings are expected to begin trading next week, mostly technology deals with an emphasis on telecommunications.
Although that's a sizeable lineup in terms of quantity, analysts aren't expecting many companies to pique investors' interest in a big way.
Vincent Slavin, an institutional trader with Cantor Fitzgerald, said he's really only interested in one of the next week's wanna-be IPOs.
"The only thing that needs to be played is ONI Systems," Slavin said. The offering had been generating buzz in Wall Street circles for weeks, but the company delayed its debut because the deal drew some last-minute scrutiny from securities regulators, he said.
Nonetheless, ONI is far from the only company seeking to raise large sums next week.
One of the more sizeable offerings comes from Chello Broadband, a Netherlands-based company that sells high-speed cable Internet service and is looking to raise close to $370 million through an IPO underwritten by Goldman Sachs.
Minneapolis-based power company NRG Energy is shaping up as the biggest offering on the calendar, looking to rake in about $470 million. Also in the lineup are Exult, an employee services firm with a focus on online strategies, CrossWorlds Software, a maker of connectivity applications, and drug firm First Horizon Pharmaceuticals.
Oh, and don't forget UbiquiTel, a developer of wireless networks in the Western United States that DeGraw dismisses as the IPO dog of the week.
"It's in a lesser state of development in terms of network buildout than anyone we've seen before," DeGraw said, calling it "a very weak deal."
A pricey deal, too. UbiquiTel is seeking to raise about $180 million through an IPO underwritten by Donaldson Lufkin & Jenrette.
